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Do I Qualify?
Bankruptcy is an effective legal tool for getting your finances back on track after you've had a hiccup. However, you must qualify before you can file for bankruptcy in Washington State. Further, each type of bankruptcy Chapter has specific qualifications. If you're wondering if you meet the criteria, speak with our bankruptcy attorneys right away. We'll review your financial situation for free and determine if you qualify for bankruptcy relief in Spokane County.
With over 30 years of combined experience handling bankruptcy cases and working with local Spokane courts, our team of attorneys has helped people in neighborhoods from Browne's Addition to the South Hill. Count on us to assist you in determining the right path forward. Whether you're dealing with aggressive creditors or worried about losing your home in the Valley or near Spokane's historic Riverfront Park, we have the local legal knowledge you need.
Contact our Spokane-based bankruptcy law offices now to learn if you qualify.
How Do I Become Eligible for Chapter 7 Bankruptcy in Washington?Courts discharge most of your unsecured debts with Chapter 7 by liquidating non-exempt assets. Under federal law, specifically the Bankruptcy Code (11 U.S. Code § 727), Chapter 7 bankruptcy is available in Spokane if you meet specific financial criteria:
- Income Below The Median: Your monthly income must fall below the median for a household of your size in Washington State.
- Pass the Means Test: If your regular income is above the median for Washington State, you will need to pass the means test for a household to qualify, which evaluates your income versus your expenses.
- No Recent Bankruptcy Filings: You're ineligible to file again if you've filed for Chapter 7 within the last 8 years or Chapter 13 bankruptcy in the past 6 years.
- Non-Exempt Assets: If you have significant assets, you may be required to sell them to pay creditors, though Washington State's exemption laws (RCW 6.15) allow you to keep specific property.
- Personal Bankruptcy: Chapter 7 is for individuals rather than businesses or corporations.
Consider Chapter 13 bankruptcy if you have consistent income and need assistance reorganizing your debts. Under the Bankruptcy Code (11 U.S. Code § 1301), Chapter 13 lets you keep your property while repaying debts through a manageable repayment plan over 3-5 years. Here’s what you need to qualify for it:
- Regular Income: Because Chapter 13 requires monthly payments, you must have a regular income to make payments.
- Debt Limits: Your secured debt (like mortgages or car loans) must be under $1,395,875, and your unsecured debt (like credit cards) must be under $465,275 based on the bankruptcy debt limits.
- Regular Payments: You must be able to commit to a manageable monthly payment plan based on your income.
- No Recent Bankruptcy Filings: You must not have dismissed a Chapter 13 case in the past 180 days or have been in a Chapter 7 bankruptcy recently.
If you do not qualify for bankruptcy, Washington State law still provides options. Our attorneys will explore debt relief alternatives like:
- Debt Settlement: Debt settlement negotiates lower payments with creditors but may hurt your credit. Washington State's Consumer Protection Act (RCW 19.86) ensures that debt settlement companies practice fair practices. Forgiven debt could be taxable.
- Debt Management Plan (DMP): A DMP consolidates unsecured debt into one payment. Credit counselors must obtain a license from the Washington State Department of Financial Institutions (DFI) under RCW 31.04 to ensure they follow fair practices.
- Credit Counseling: Certified credit counselors in Washington State help negotiate debt terms and provide financial education. The DFI must license counselors under RCW 31.04.
- Refinancing/Consolidating Loans: Refinancing loans can reduce payments but may require good credit. Lenders must follow the Consumer Loan Act (RCW 31.04), which ensures fair terms.
- Negotiating With Creditors: Washington State law under the Consumer Protection Act (RCW 19.86) protects you from unfair creditor practices. Some creditors may offer new payment terms or temporary relief.
Whether you qualify for bankruptcy or not, our knowledgeable attorneys will help you find relief for your debts. Contact our Spokane law offices now to schedule your free consultation.
Our Spokane Attorneys Answer Your Top Bankruptcy FAQsQ: How long does it take to find out if I qualify for bankruptcy?
A: We usually give you a good idea during your first consultation. Once we gather your income details, debts, assets, and living expenses, we can determine which chapters you qualify for under federal law and how Spokane courts are likely to handle your case. Our process is simple, thorough, and judgment-free.
Q: Do I need to live in Spokane to file for bankruptcy here?
A: To file in the Eastern District of Washington (which covers Spokane), you must have lived in Spokane County or elsewhere in Eastern Washington for at least 91 of the last 180 days before filing (per 28 U.S. Code § 1408). If you just moved here, we'll help you figure out whether you need to wait or file somewhere else first.
Q: Will the court deny my bankruptcy if I have too many assets?
A: Not necessarily. If you have more assets than can be protected under Washington's exemption laws, Chapter 13 may be a better fit. In Chapter 7, the court may sell non-exempt assets to pay creditors. However, we work hard to protect everything you legally can.
Q: Do I still qualify if I'm behind on my bills but not totally broke?
A: Absolutely. Bankruptcy isn't just for people with no money. If you're constantly juggling payments, using credit cards to cover basics, or getting deeper in debt each month, bankruptcy is ideal for you. Spokane's cost of living keeps rising, and even folks with decent jobs can find themselves in financial quicksand.
How Can Your Spokane Attorneys Help Me Qualify For Bankruptcy?
From calculating the Means Test to protecting your property under Washington State's exemption laws, our Spokane attorneys will handle everything. We'll walk you through your options with zero judgment and complete transparency so you can move forward with confidence. Call our Spokane County law offices to schedule a free consultation with our knowledgeable bankruptcy attorneys.
